I recently learned some of the latest about Cannondale from a bike dealer who lives in the area where the bikes are assembled, in Pa.
After Cannondale went bankrupt making motorcycles, a venture capitalist group called Pegasys took over, which thankfully, has a serious cyclist on the team there.
They fired Joe Montgomery, who founded the company, and he's had to sell his private plane. He's very bitter about the whole thing.
Gossip about Cannondale
Mon, 11/03/2003 - 7:57am
Tue, 11/04/2003 - 9:33am
#1
"Hello Maggie,
You probably have seen this article in VeloNews. If not it is enclosed below. It gives a few details of the Cannondale re-shuffeling.
Cannondale sacks founder's son and two others, shuffles management
By VeloNews Interactive
This report filed October 3, 2003
The parent company of Cannondale Corporation has sacked three vice presidents, including the son of the company's founder, according to the trade journal Bicycle Retailer & Industry News.
Those dismissed Wednesday by majority stockholder Pegasus Capital Advisers include Scott Montgomery, vice president of marketing and son of Cannondale founder Joe Montgomery; Dan Alloway, vice president of sales and a 15-year Cannondale employee; and Len Konecny, vice president of purchasing, according to the trade journal.
Attempts to contact Scott Montgomery were unsuccessful.
Cannondale's Tom Armstrong explained that, ""although the news was shocking to everyone here at Cannondale I think, for the long-term, it will benefit the company. This move was just one piece of the larger executive reorganization of the company which will help position us well for the future. Unfortunately that had to come at the expense of Scott, Dan and Len, but we wish them the best and know that they'll land on their feet soon enough.""
Montgomery was replaced by Matt Mannelly, former chief marketing officer for the U.S. Olympic Committee. Mannelly also held management positions at Nike and was Gatorade's director of marketing.
David Manchester, a longtime Cannondale employee, replaced Alloway. Steve Metz, Cannondale's longtime bike product manager, was named vice president of sourcing and product management, replacing Konecny.
Pegasus reportedly has made other changes in the Cannondale management team as well, promoting Jean Benson to vice president of human resources and Rick Hinson to director of materials; and naming John Doerr, president of operations, as chief operating officer.
David Uri, a director of Cannondale and a partner at Pegasus Capital Advisors, told Bicycle Retailer that the changes provide Cannondale ""with the internal organization needed to realize our goals of strengthening and growing Cannondale, and making us a more consumer and market-driven company.""
Uri was quoted as saying that Pegasus remains committed to manufacturing in the United States and to keeping Cannondale's image at the high end.
""We are working with consultants to meet dealer demand efficiently. We need to serve our customers better,"" Uri said. ""We know it won't happen in a week or a month, but we will be very methodical. We want to grow profitably, not just grow.""
Uri and the new management team will be meeting with Cannondale dealers and vendors during the upcoming Interbike trade show in Las Vegas. Meetings are scheduled at 9 a.m. and 10:30 a.m. Monday, October 13, in room 102 of the Sands Convention Center, downstairs from the main exhibit hall.
"
Wed, 11/05/2003 - 10:41am
#2
Cannondale news
"Does anyone know the reason for this corporate shake-up? David Uri's business-speak doesn't give us any clue: ""making us a more consumer and market-driven company,"" ""we want to grow profitably, not just grow."" All I know is that Cannondale went Chap. 11 in January 2003 and was sold at auction to Pegasus, then Pegasus sold off the motorsports division to Dinli in September, because they wanted to concentrate on Cannondale's profitable bike business. Was this a bad year in sales for Cannondale bikes, or did they have problems meeting demands? Their Saeco team did pretty well, winning the World Cup team prize. Also Simoni won the Giro and Astarloa the Worlds. So Cannondale is continuing to get more recognition in Europe, at any rate.
I think that this change bodes ill for Cannondale's future. Scott Montgomery was brought up in the bike business and has always worked in it, and he and his wife are enthusiastic cyclists. What does Mannelly know or care about bicycles? He's a marketing man, and worked for Quaker Oats and Gatorade, then for the USOC. He won't bring the knowledge or ""passion"" to the job that Scott Montgomery had. His focus will be on the ""bottom line."" An MBA marketing genius may do very well at selling Cap'n Crunch and Gatorade; these are simple products, there isn't much knowledge involved. Bicycles are a little different: to do well over the long-term, you can't focus on marketing at the expense of manufacturing. I'm afraid that this will happen with Cannondale. Now Cannondales are made in the US. How long will this continue, under profit-driven Pegasus?
"
Wed, 11/05/2003 - 10:54am
#3
Wed, 11/05/2003 - 2:24pm
#4
Don't blame the maggots
True, the news about Canondale sucks, both on a human level (jobs lost, lives thrown into chaos) and on a technical level (do the new bikemakers have the passion and attention to technical detial and workmanship that the old did?)
On the other hand, the guys with the passion are the guys at fault. Somehow they went belly up, prompting the takeover. They had to be doing something wrong. Maybe it was expanding beyond building bicycles. Maybe it was inattention to business detail while they lovingly built their bikes. Maybe...well, I dunno, but they lost the company, in essence killing a good thing. Blame the killer, not the maggots currently gnawing on the corpse.
Hey, I'm not replying to this no matter what anybody posts in response, or my Web Posters Anonymous sponsor's gonna give me hell.
Wed, 11/05/2003 - 10:24pm
#5
Where, when, and why Cannondale went bad.
There were business mistakes along the way, e.g. Cannondale's wrong-headed rapture with motorcycles and, even more, squeezing out perfectly good dealers, but...
This thread speaks of Scott Montgomery, son of Cannondale's founder, Joe Montgomery. Joe, in essence, looted the corp. for his private enrichment, treating himself to massive, no cost loans (that I don't believe were re-paid), his airplane, et al.
Does this sound contentious? Alas, it's not. It was reported fact at the time.
